According to a new market report published by Credence Research, Inc. “Global Power Tools Market (By End-use Application (Non-residential (Construction and Mining, Automotive, Semiconductor, Aerospace,), and Residential), By Type (Electric Power Tools, Pneumatic Power Tools, Hydraulic Power Tools, and Others) Market – Growth, Share, Opportunities, Competitive Analysis, and Forecast 2016 – 2023”, the global power tools market is expected to expand at a CAGR of 5.2% from 2016 to 2023, reaching US$ 41.0 Bn by 2023.
Despite product improvements and innovations, the market for power tools saw slow sales at the beginning of this decade. Sluggish growth can be attributed to the dependence of power tools on macroeconomic conditions, which have been highly unpredictable and unstable since the start of the economic slowdown in 2008.
Moreover, with financial markets showing off-late stability, re-emergence in the building and automotive sectors will stimulate demand for power tools. In the current scenario, countries including India and China have relatively lower penetration rates due to high upfront cost of power tools compared to hand tools. However, with increasing competition, we expect the unit price of power tools to fall in the coming years.
The global market for power tools is matured and highly consolidated. The leading four power tool manufacturers account for over 45% of the global market revenue. Some of the leading manufacturers identified in the global power tools market include Robert Bosch GmbH (Germany), Emerson Electric Co. (the U.K.), Stanley, Black & Decker, Inc. (the U.S.), Actuant Corporation (the U.S.), Makita Corporation (Japan), SKF AB (Sweden), Danaher Corporation (the U.S.), Hilti Corporation (Germany), Techtronic Industries (China), and Hitachi Koki Ltd (Japan) among others.
These players focus on expanding their product portfolio and global presence through strategic acquisitions and partnerships. In addition, they seek to develop cost-effective power tools to gain competitive advantage over competitors.
- Growing preference for cordless and battery powered power tools in residential applications
- Resurgence in the housing sector
- Growing popularity of Do-It-Yourself (DIY) activities
- Growing trend towards modernizing housing stock to drive growth in power tool demand